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Fair Value Measurements
 6 Months Ended
Jun. 30, 2020
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 6—Fair Value Measurements

 

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis:

 

 

 

Level 1 (1)

 

 

Level 2 (2)

 

 

Level 3 (3)

 

 

Total

 

 

 

(in thousands)

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

338

 

 

$

6

 

 

$

    —

 

 

$

344

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

1,339

 

 

$

—

 

 

$

—

 

 

$

1,339

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Derivative contracts

 

$

5

 

 

$

322

 

 

$

—

 

 

$

327

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

1,569

 

 

$

410

 

 

$

—

 

 

$

1,979

 

 

(1) – quoted prices in active markets for identical assets or liabilities

(2) – observable inputs other than quoted prices in active markets for identical assets and liabilities

(3) – no observable pricing inputs in the market

 

The Company’s derivative contracts consist of natural gas and electricity put and call options and swaps. The underlying asset in the Company’s put and call options is a forward contract. The Company’s swaps are agreements whereby a floating (or market or spot) price is exchanged for a fixed price over a specified period.


The Company did not have any transfers of assets or liabilities between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the period ended June 30, 2020 and 2019.

 

 

The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting this data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 

Restricted cash—short-term and long-term, trade receivables, due to IDT Corporation, and other current liabilities. At June 30, 2020 and December 31, 2019, the carrying amounts of these assets and liabilities approximated fair value. The fair value estimate for restricted cash—short-term and long-term was classified as Level 1. The carrying value of other current assets, due to IDT Corporation, and other current liabilities approximated fair value.  

 

Other assets, revolving line of credit and notes payable. At June 30, 2020 and December 31, 2019, other assets included notes receivable. At June 30, 2020, the outstanding balance of the sellers of Lumo's one-time option was not significant and was included in other liabilities account in the consolidated balance sheet. The carrying amount of the note receivable, revolving line of credit and notes payable approximated fair value. The fair values were estimated based on the Company’s assumptions, and were classified as Level 3 of the fair value hierarchy.


The following table presents the items measured at fair value on a non-recurring basis:  


    

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

  

 

 

(in thousands)

  

June 30, 2020 

 

 

 

 

 

 

 

 

 

 

 

  

Impairment of property and equipment

 

$ 

—

 

 

$

—

 

 

$

993

 

 

$

993

  

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

          Impairment of goodwill

 

$ 

—

 

 

$ 

—

 

 

$ 

400

 

 

$ 

400

  


The primary non-recurring fair value estimates typically are in the context of business acquisitions (Note 5) which involve a combination of Level 2 and Level 3 inputs, goodwill impairment testing, which involves Level 3 inputs, and asset impairments (Note 8) which utilize Level 3 inputs.


Concentration of Credit Risks


The Company holds cash, cash equivalents, and restricted cash at several major financial institutions, which may exceed Federal Deposit Insurance Corporation insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition.


The following table summarizes the percentage of consolidated revenues from customers that equal or exceed 10% of the Company’s consolidated revenues in the period (no other single customer accounted for more than 10% of consolidated revenues in these periods): 

 

June 30,

 



2020

2019

Customer A

 


10

% 

 


na

   

 

na-less than 10% of consolidated revenue in the period


The following table summarizes the percentage of consolidated trade receivable by customers that equal or exceed 10% of consolidated trade receivables at June 30, 2020 and December 31, 2019 (no other single customer accounted for 10% or greater of our consolidated trade receivable as of June 30, 2020 or December 31, 2019):

 

June 30,

 


2020

2019

Customer B

 


14

% 

 


na

  

 

na-less than 10% of consolidated revenue in the period